Addressing the potential risks of extended-term care expenses may be one of the biggest financial challenges for Westinghouse Air Brake employees who are developing a retirement strategy.
Seven in ten Westinghouse Air Brake employees over age 65 can expect to need extended care services at some point in their lives. So understanding the various types of extended care services – and what those services may cost – is critical as you consider your retirement approach.
What Is Extended Care?
Extended care is not a single activity. It refers to a variety of medical and non–medical services needed by those who have a chronic illness or disability – most commonly associated with aging.
Extended care can include everything from assistance with activities of daily living – help dressing, bathing, using the bathroom, or even driving to the store – to more intensive therapeutic and medical care requiring the services of skilled medical personnel.
Extended care may be provided at home, at a community center, in an assisted living facility, or in a skilled nursing home. And extended care is not exclusively for the elderly; it is possible to need extended care at any age.
How Much Does Extended Care Cost?
Extended care costs vary state by state and region by region. The 2021 national average for care in a skilled care facility (single occupancy in a nursing home) was $108,405 a year. The national average for care in an assisted living center (single occupancy) was $54,000 a year. Home health aides cost a median of $27 per hour, but that rate may increase when a licensed nurse is required.
What Are the Payment Choices?
Often, extended care is provided by family and friends. Providing care can be a burden, however, and the need for assistance tends to increase with age.
Westinghouse Air Brake employees who would rather not burden their family and friends have two main choices for covering the cost of extended care: they can choose to self-insure or they can purchase extended care insurance.
Featured Video
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Many self-insure by default – simply because they haven't made other arrangements. Those who self-insure may depend on personal savings and investments to fund any extended care needs. The other approach is to consider purchasing extended care insurance, which can cover all levels of care, from skilled care to custodial care to in-home assistance.
When it comes to addressing your extended care needs, many look to select a strategy that may help them protect assets, preserve dignity, and maintain independence. If those concepts are important to you, consider your approach to extended care.
GenWorth.com, 2022
ACL.gov, 2022
What types of contributions can employees make to the Westinghouse Air Brake 401(k) plan?
Employees at Westinghouse Air Brake can make pre-tax and Roth (after-tax) contributions to the 401(k) plan.
Is there a company match for contributions made to the Westinghouse Air Brake 401(k) plan?
Yes, Westinghouse Air Brake offers a company match on employee contributions up to a certain percentage, which is detailed in the plan documents.
What is the eligibility requirement to participate in the Westinghouse Air Brake 401(k) plan?
Employees are eligible to participate in the Westinghouse Air Brake 401(k) plan after completing a specified period of service, typically 30 days.
How can employees at Westinghouse Air Brake enroll in the 401(k) plan?
Employees can enroll in the Westinghouse Air Brake 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
What investment options are available in the Westinghouse Air Brake 401(k) plan?
The Westinghouse Air Brake 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.
Can employees at Westinghouse Air Brake take loans against their 401(k) accounts?
Yes, Westinghouse Air Brake allows employees to take loans against their 401(k) accounts under certain conditions.
What happens to my Westinghouse Air Brake 401(k) account if I leave the company?
If you leave Westinghouse Air Brake, you can choose to leave your 401(k) account with the company, roll it over to another retirement account, or cash it out, subject to taxes and penalties.
Are there any fees associated with the Westinghouse Air Brake 401(k) plan?
Yes, there may be administrative fees and investment-related fees associated with the Westinghouse Air Brake 401(k) plan, which are outlined in the plan documents.
How often can employees change their contribution amounts to the Westinghouse Air Brake 401(k) plan?
Employees at Westinghouse Air Brake can change their contribution amounts at any time, subject to the plan’s guidelines.
Does Westinghouse Air Brake offer financial education resources for 401(k) participants?
Yes, Westinghouse Air Brake provides financial education resources and workshops to help employees make informed decisions about their 401(k) investments.
-2.png?width=300&height=200&name=office-builing-main-lobby%20(52)-2.png)
.webp?width=300&height=200&name=office-builing-main-lobby%20(27).webp)
-2.png)
.webp)